While Mrs. Clinton and other politicians have pledged to return or donate to charity donations associated with Mr. Hsu, Mr. Rutherford initially said the graduate program -- aimed at students seeking a career in international aid, politics, law, or philanthropy -- would keep its donation. After questions from The Wall Street Journal, Mr. Rutherford said "it's just not worth it" to keep the money and that he would return it to Mr. Hsu. "We believed it had been given in good faith," Mr. Rutherford said.

Rutherford suggests an inappropriate test for whether or not to return the money. Given in good faith or not, it's still stolen.

Hsu sat on the board of trustees of The New School, whose president is former Sen. Bob Kerrey, D-Neb. He was co-chairman of a gala New York benefit last October in honor of the late Robert F. Kennedy. Bill Clinton, there to receive an award, thanked the evening's benefactors, "especially our friend Norman Hsu."

Bob Kerrey -- head of the New School -- is considering a run for Senate in 2008. He ought to have the good sense to have returned the money already.